Amadeusz Juskowiak

Thomson mckinnon units cmo offering priced

Thomson McKinnon Mortgage Assets Corp a unit of Thomson McKinnon Inc is offering 100 mln dlrs of collateralized mortgage obligations in three tranches that include floating rate and inverse floating rate CMOS

The floating rate class amounts to 60 mln dlrs It has an average life of 711 years and matures 2018 The CMOs have an initial coupon of 70375 pct which will be reset 60 basis points above LIBOR said sole manager Thomson McKinnon

The inverse floater totals 48 mln dlrs It has an average life of 1349 years and matures 2018 These CMOs were given an initial coupon of 1112 pct and priced at 10440

Subsequent rates on the inverse floater will equal 1112 pct minus the product of three times LIBOR minus 612 pct

A Thomson officer explained that the coupon of the inverse floating rate tranche would increase if LIBOR declined The yield floats opposite of LIBOR he said

The fixedrate tranche totals 352 mln dlrs It has an average life of 35 years and matures 2016 The CMOs were assigned a 765 pct coupon and par pricing

The issue is rated AAA by Standard and Poors and secured by Federal Home Loan Mortgage Corp Freddie Mac certificates